Balance Sheet of an NPO shows financial position at year-end, classified into Assets, Liabilities, and Funds/Capital. Structure: Assets side shows all resources; Liabilities side shows obligations; Fund/Capital shows ownership/surplus. Assets Classification: Fixed Assets (property, plant, equipment at cost less depreciation), Current Assets (cash, bank, receivables, inventory), Intangible Assets (goodwill, patents). Liabilities Classification: Current Liabilities (payables due within one year), Long-term Liabilities (loans repayable beyond one year). Funds/Capital Classification: Endowment Fund (restricted for specific purposes, not to be spent), General Fund (unrestricted, accumulated surpluses), Specific Purpose Funds (restricted donations, life membership fees). Capital/Fund Equation: Opening Fund + Income/Surplus - Expenditure/Deficit - Drawings = Closing Fund. Reconciliation: Opening Fund + Surplus from I&E Account = Closing Fund (verified). Separate funds for restricted items: Life Membership Fund, Specific Donation Fund, Building Fund, Corpus Fund. Disclosure: Notes should explain fund composition, Restrictions on fund usage, Changes in fund balance during period. Comparison with R&P Account: I&E Surplus added to Fund; this explains change from beginning fund to closing fund. Exam tip: Master the Balance Sheet structure with separate funds; practice reconciling Fund opening and closing balances; understand fund restrictions and disclosures; verify Fund equation balances.